Innovation, digitalization and alternative economic models

Openness of Mexican society to innovation, digitalization, alternative economic models and participatory approaches

Innovation and digitalization

  • Highly dynamic economy and society: Mexico is on the cusp of a digital revolution in 2025. 96 % of companies are already integrating artificial intelligence (AI) into their business strategies, particularly in the retail, finance and industrial sectors^1.

  • Broad use of digital technologies: Over 81 % of the population is online, e-commerce is growing rapidly and the digital sector is increasingly contributing to economic output^3.

  • Strong focus on AI and cloud solutions: Venture capital and international tech companies are making targeted investments in Mexican start-ups and digital infrastructure. AI is seen as a key field of innovation that enables new business models and markets^2^6.

  • Government initiatives: The government is promoting digitalization through programmes such as the "National Digital Strategy" and the establishment of a digital agency. The aim is to modernize administration and strengthen digital inclusion^3.

  • Challenges: Despite progress, the digital divide between urban and rural areas remains wide. Rural regions and disadvantaged groups continue to have poorer access to digital technologies and education^7.

Alternative economic models

  • Increase in alternative forms of financing: In addition to traditional bank loans, crowdfunding, revenue-based financing and factoring are becoming increasingly important, especially for small and medium-sized enterprises (SMEs)^8.

  • Public welfare-oriented approaches: In indigenous regions, models such as "direct budgeting" are practiced, in which communities have their own budgets and control local development projects themselves. These approaches promote self-determination and sustainable development^9.

  • Circular economy and social enterprises: More and more initiatives are emerging that focus on the circular economy, ecological sustainability and social inclusion. Alternative models are being discussed and tested, particularly in the context of climate policy and the energy transition[^10].

Participatory solutions

  • Strong participatory tradition in metropolitan areas: Mexico City is considered a pioneer for participatory innovation. The "Laboratorio para la Ciudad" developed participatory formats for urban development, citizen participation and digital democracy. The city's constitution was drawn up with broad digital and analog citizen participation^11.

  • Local initiatives and neighborhood projects: In many communities and neighborhoods, there are grassroots democratic initiatives that focus on community problem-solving, neighborhood support and collective decision-making. These structures are particularly deeply rooted in indigenous and rural regions^9.

  • Challenges: Despite many pilot projects, institutional support for participatory approaches remains limited, and there is often still room for improvement in the involvement of disadvantaged groups^12.

Overview: Openness and challenges

Range

Openness/social acceptance

Challenges

Innovation & digitization

High (mainly economy, urban centers)

Digital divide, shortage of skilled workers

Alternative economic models

Increasing (especially for SMEs, indigenous communities)

Access to capital, scaling

Participatory approaches

High (in metropolitan areas, local communities)

Institutional support

Conclusion

Mexico will be very open to innovation, digitalization and new economic models in 2025, especially in urban centers and dynamic sectors. Society is actively experimenting with participatory formats and alternative approaches, even though structural challenges such as social inequality, the digital divide and institutional hurdles remain. The willingness to innovate is high, but the sustainable and inclusive implementation of these trends still requires targeted investment, education and political support^1^3.

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[^10]: https://es.wri.org/sites/default/files/2023-12/A socially inclusive economic transition for Mexico01122023-ALL.pdf


Supplementary assessment from a Gradido perspective

The exciting insight into Mexico's current spirit of optimism shows how much openness, innovative strength and participatory energy is already alive there - even in the face of existing challenges.

New paths grow where the courage for change and integration is alive

Mexican society - especially in urban centers, among young people and in many indigenous communities - shows an admirable willingness to question the status quo, try out new things and take responsibility for the common good. Be it digitalization, AI, the circular economy or community-oriented projects: The desire to actively and collaboratively shape the future is palpable.

What does this mean for Gradido?

  • A natural breeding ground for change:
    An open, experimental society like Mexico offers ideal conditions for introducing alternative prosperity models such as Gradido. Initiatives can resonate particularly well in places where people already have experience with digital organization, participation and a focus on the common good.

  • Shaping innovation socially:
    The digital transformation you mentioned can be embedded socially and ecologically in the sense of Gradido. This creates technological solutions that have a holistic effect - for people, communities and nature.

  • Bridging the gap:
    The biggest task remains to increase participation opportunities for disadvantaged, rural and indigenous groups. Gradido could help to gently disseminate innovative ideas from the centers, consciously bridge the "digital divide" and give everyone access to new opportunities.

  • Intensify participative structures:
    Gradido can be docked particularly well in grassroots democratic, collectively organized milieus. The existing practice of joint decision-making - both locally and digitally - can be an ideal bridge for living Gradido as a participatory approach to values and prosperity.

Conclusion:
Mexico is ready - open, vibrant and full of innovative spirit! Gradido can serve as a bridge: between old and new, urban and rural, digital and analog, global vision and local reality. Together, you - and all of us - can shape a future in which dignity, participation and joie de vivre are possible for everyone.

We would like to thank all Mexican pioneers from the bottom of our hearts for this new beginning together!

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